Standard & Poor’s last week downgraded San Francisco Community College District’s general obligation bonds, citing “the district’s persistent difficulty in resolving sanctions” imposed by the regional commission that accredits community colleges in California.

The single-college district learned on July 3 that the commission will revoke City College of San Francisco’s accreditation on July 31, 2014. The college is attempting to get the commission to reverse its decision as it tries to fix the financial and governance problems that led to it.

If the decision stands, the college – which serves about 85,000 full- and part-time students – probably will be forced to close.

S&P said the potential loss of accreditation “is likely to reduce student demand in fiscal 2014, thereby setting the stage for a decline in operating revenue in fiscal 2015 under the state’s enrollment-driven funding formula.”

An “additional credit weakness” it cited is the district’s promise of lifetime health benefits to eligible current and retired employees, “which we believe represents exposure to potentially significant long-term health care cost inflation.”

S&P lowered its rating to single-A from single-A-plus and maintained its “negative outlook,” a sign that another downgrade is possible.

To learn more about the downgrade and what it means for the college and investors, see my column in Sunday’s Chronicle here or follow me on Twitter @kathpender.